Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 84,300 Apparel

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July.

Corporate legal office salaries $ 84,300

Apparel Department cost of salesEvendale Store $ 100,200

Corporate headquarters building lease $ 56,100

Store managers salaryEvendale Store $ 14,000

Apparel Department sales commissionEvendale Store $ 11,650

Store utilitiesEvendale Store $ 16,300

Apparel Department managers salaryEvendale Store $ 8,350

Central warehouse lease cost $ 24,800

Janitorial costsEvendale Store $ 12,300

The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the companys stores.

1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. What is the total amount of the Apparel Departments direct costs that are also variable costs with respect to total departmental sales?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Theory Of Constraints Handbook

Authors: James Cox, John Schleier

1st Edition

0071665544, 978-0071665544

More Books

Students also viewed these Finance questions

Question

The Altmans Z-score model has several weaknesses. What are they?

Answered: 1 week ago